JKCA funds case: J&K High Court rejects ED plea to add charges, says participation in misappropriation alone does not amount to receiving stolen property

The Directorate of Enforcement challenged the Trial Court’s orders dated 22.03.2026 and 30.03.2026, whereby its application under Section 216 CrPC seeking addition of charges under Sections 411 and 424 of the Ranbir Penal Code (RPC) was rejected and charges were framed only under Sections 120-B, 406 and 409 RPC.

The underlying CBI case concerned alleged diversion and misappropriation of funds received by the Jammu & Kashmir Cricket Association from the BCCI. The CBI charge-sheet alleged that the accused, acting pursuant to a criminal conspiracy, facilitated unauthorized banking transactions and diverted approximately Rs.43.69 crores of JKCA funds.

The Enforcement Directorate had earlier initiated proceedings under the PMLA on the basis of the CBI case. Those proceedings were quashed by the High Court for want of a scheduled offence, while liberty was reserved to the Enforcement Directorate to approach the Trial Court for alteration of charge, if permissible in law.

The Trial Court initially treated the Enforcement Directorate’s application as maintainable but subsequently dismissed it on the ground that the Directorate lacked locus standi.

Whether the Enforcement Directorate could maintain an application seeking addition or alteration of charges under Section 216 CrPC, particularly after liberty had been granted by superior courts and the Trial Court had earlier treated the application as maintainable?

Whether the material in the CBI charge-sheet prima facie disclosed the ingredients of Section 411 RPC, namely dishonest receipt or retention of stolen property with knowledge or reason to believe that it was stolen?

Whether the material prima facie disclosed the ingredients of Section 424 RPC, concerning dishonest or fraudulent concealment or removal of property, or assistance in such concealment or removal?

Whether the potential effect of adding Sections 411 or 424 RPC on the Enforcement Directorate’s jurisdiction under the PMLA could determine the question of addition of charges?